As observed by AT Kearney, a global strategic management consulting firm, we can say that the problem is that of perception. In another words, the philosophy of building homes in the Kingdom needs change. The existing trend is to construct high-cost residences such as palaces, villas and luxurious apartments. At the same time, the general trend in the remaining Middle East region as well as in Africa, and perhaps in the world as a whole, is building low-cost homes. In other words, it is a trend to have access to affordable housing for the middle class who can neither buy villas nor be satisfied with living in huts or nests.

Hence, it is high time for real estate developers and investors to change their major housing plans or strategies. They should come forward with ideal models of low-cost houses. They should develop a well-planned model in terms of reasonable space to accommodate a family. At the same time, the homes should be affordable regardless of whether it is for renting or renting that ends in ownership.

In this regard, the mayoralties and municipalities in various parts of the Kingdom should make available land at reasonable rates, and carry out infrastructure projects such as building roads and setting up utility services. As far as local banks are concerned, they should enter the real estate market by extending soft loans either to companies or individuals. The loans should reflect the social commitment of the banks. This also warrants a closer relation between banks and real estate companies in a way that protects both parties’ rights and fulfills their obligations and social commitments with regards to implementing housing projects.

It is unfortunate that Saudi families spend about 50 percent of their income on luxury and recreation. They never consider saving a major component of their spending to build prosperous futures for generations to come. The percentage of bank savings by Saudi individuals is meager when compared to other countries in the world where the savings of both individuals and families exceeded 20 percent.

We are facing the problem of rising inflation every year without there being any basic solutions. The obstacle, as I mentioned in the beginning, is changing in our perception to building houses in accordance to the income of families rather than constructing mansions and huge villas.